Values have dropped 29% in the last year.
Without knowing all the details, you need to have a professional analyze your situation and present options with the pros and cons.
The short story:
1. If you are relocating will your new employer pay part of the cost?
2. If you are just moving (not job related) do you have to move? The worst time to sell is in a buyer's market.
3. There are a couple of options:
If you would really prefer to stay in the house, try to get the lender to modify your loan by lowering the interest rate.
If you really need to move, then you can examine either a short sale (with lender approval), or other alternatives.
There are significant pros and cons of which you should be aware BEFORE you commit to a plan.
Iâ€™m sorry to hear of your distress. Signing over your deed to the bank is only one option you have (and it's an option that can substantially hurt your credit). You might also consider the following:
*Rent your property
*Sell and bring cash to closing (you should consult a financial expert on what cash or liquid assets you could use for closing - this might help you pay a commission.
*Home Affordable Modification (check out MakingHomeAffordable.gov). There are incentive programs to help with the costs of selling and relocation.
*But FIRST, call your bank and see if theyâ€™ll work with you! Lenders might (to avoid foreclosure) will give you a break, given you have a plan to catch up and pay the loan (i.e. listing your property and using the proceeds for the payoff).
Feel free to contact me for any details on the above.
Chelsea Stillmunkes/Licensed in Iowa/Coldwell Banker Hedges Realty/5408 Blairs Forest Way/Cedar Rapids/IA
If you were to rent it out you would continue to be able to write off the interest portion of your mortgage payment and you would also be able to write off 1/27th of the value of the structure each year.
This would help offset any difference between your mortgage payment and any rents received. I know it doesn't seem like it at this moment but home values will rise once again and if you wait long enough you will be able to sell your home and make a profit.
I would be happy to meet and discuss your alternatives. Feel free to contact me!
Elite GMAC Real Estate
Cedar Rapids, IA 52402
IOWA Licensed Real Estate Broker
a) Listing agent flat fee service
b) If you give the home back to the bank ruins your credit for years !
d) Lease option purchase
~ National Featured Realtor and Consultant, Lecturer regarding Credit Repair, Mortgage Loan Officer